[Politics] Inheritance Tax

[Hugo Rune]

Having just finished with my mum’s estate, the above is correct.

Condolences to you and your family.

 

[Hugo Rune]

As has been stated before, if you're a couple leaving your main residence to your children, they will only be taxed on that part over £1M and significant estates without any residential property are unusual. However all you ever see quoted is the £325K. The simple fact is that you have to be quite well off to pay significant Inheritance tax on your estate.

Just another example of the lies constantly told to the naïve and most vulnerable in Society to get them to vote against their interests yet again

Indeed.

But some very wealthy choose not to ‘spoil’ their kids and make them work for their money in an attempt to not add to the lazy and entitled Boris Johnsons of this world.

Gordon Ramsay won't leave any of his money to his kids

‘It’s definitely not going to them’Gordon Ramsay has never been afraid of speaking his truth (side note, when did we...

www.joe.co.uk

I suspect he has been in enough kitchens to know what a proper day’s work is and seen enough entitled twunts in his high end dining rooms to see what sort of **** a silver spoon birth normally delivers this country.

 

[Colonel Mustard]

I agree they have been mentioned throughout this thread, but I only ever remember seeing £325K in any MSM headlines. And as is proven time and time again, that is as far as a significant proportion of people get

I think that’s ’confirmation bias' TBH. I just spent a grubby 15 mins looking at Mailonline articles about IHT and they seem to explain it quite succinctly.
———————-

How much is inheritance tax and who pays?​

You need to be worth £325,000 if you are single, or £650,000 jointly if you are married or in a civil partnership, for your loved ones to have to stump up death duties. But there is a further chunky allowance which increases the threshold to a joint £1million if you have a partner, own a property, and intend to leave money to your direct descendants.
———————
This 'explainer' appears several times so it seems to be copied and pasted to different articles. I guess there’s only so much you can explain in a headline.

If you’re talking generally about news management in newspapers, I agree with you, though I dislike it equally in the left-leaning MSM just as much as in the right-leaning MSM. I don’t find it more acceptable just because an article or newspaper supports my prejudices and preferences. But this is getting a bit off-topic now.

 

[Bodian]

Each individual has a nil rate band of £325k and a residence nil rate band of £175k. Therefore if a married couple have a house worth £350k or more, which they pass to a direct descendent, they have total allowances of £1m between them.
Therefore zero tax on anything below £1m and 40% tax above that threshold.
The residence nil rate band is also tapered down by £1 in every £2 that the estate is over £2m in total. So the very wealthy will only get a nil rate band of £325k each.
I would think that the Tories may look at reducing the tax rate from 40% somehow.
I expect it won’t have time for the legislation to be passed before they lose the general election anyway. The legislation on their abolition of the Lifetime Allowance on pensions still hasn’t been finalised.

Having just finished with my mum’s estate, the above is correct.

Just out of interest - do you know when a 'married couple' become 'single' for IHT purposes?

My father-in-law will be leaving an estate that is borderline for IHT (mainly the house that he bought in 1973 for a few pennies). My mother-in-law died 20 years ago now - they were in the house then, and her will passed everything to him. Is he still classed as part of a married couple? Because of course it's very rare for a married couple to die at precisely the same moment, so I'm guessing there must be some sort of time limit / threshold?

 

[Colonel Mustard]

I think it's a bad idea too, for a number of reasons, for one it adds to housing problems, with older folk sometimes hanging on to a large family home when they could downsize to something more suitable for them, and free up a family sized home, because if they leave cash rather than property it will get taxed.

I don’t think that’s the main reason why 'older folk' don’t all downsize. Sometimes it’s just far more trouble than it’s worth. There are two of us in a large-ish house and we’ve no plan to downsize. It’s taken a very long time to get here but we’ve finally got enough room to do what we want to do, and to store decades' worth of crap. It would be a nightmare to move into a much smaller place again. Maybe when one of us dies the other will decide it’s all too much hassle to maintain. But certainly nothing to do with IHT. And I don’t see how older people downsizing has any impact on the housing crisis. Unless so many older people moved at once that there was a massive oversupply and a house price drop. And where do all the oldies move to? Wouldn’t we put a massive strain on the supply of small houses and apartments, pushing up the price for younger, lower income families? Too simplistic an argument IMO.

 

[Super Steve Earle]

Just out of interest - do you know when a 'married couple' become 'single' for IHT purposes?

My father-in-law will be leaving an estate that is borderline for IHT (mainly the house that he bought in 1973 for a few pennies). My mother-in-law died 20 years ago now - they were in the house then, and her will passed everything to him. Is he still classed as part of a married couple? Because of course it's very rare for a married couple to die at precisely the same moment, so I'm guessing there must be some sort of time limit / threshold?

I'm no expert, but I believe your mother-in-laws's allowance passed to your father-in-law permanently. It isn't time dated.

 

[dazzer6666]

Just out of interest - do you know when a 'married couple' become 'single' for IHT purposes?

My father-in-law will be leaving an estate that is borderline for IHT (mainly the house that he bought in 1973 for a few pennies). My mother-in-law died 20 years ago now - they were in the house then, and her will passed everything to him. Is he still classed as part of a married couple? Because of course it's very rare for a married couple to die at precisely the same moment, so I'm guessing there must be some sort of time limit / threshold There’s no time limit as far as I’m aware - there are some conditions (for example if he’s changed properties since) but if it’s the same house

There’s no time limit as far as I’m aware - there are some conditions (for example if he’s changed properties since) but if it’s the same house then you’ll benefit from the transferred RNRB.

 

[Thunder Bolt]

Just out of interest - do you know when a 'married couple' become 'single' for IHT purposes?

My father-in-law will be leaving an estate that is borderline for IHT (mainly the house that he bought in 1973 for a few pennies). My mother-in-law died 20 years ago now - they were in the house then, and her will passed everything to him. Is he still classed as part of a married couple? Because of course it's very rare for a married couple to die at precisely the same moment, so I'm guessing there must be some sort of time limit / threshold?

If a married couple die at the same time, such as in an accident, the younger of the two is deemed to have died last.

No, to your answer, your father in law is legally classed as a widower, so therefore single. I've no idea if that applies to property or wills.

 

[jessiejames]

Having just finished with my mum’s estate, the above is correct.

Sorry about your loss. Did you find it easy dealing with it all?
Reason for asking my dad passed away in a nursing home back in March, he was put into care by social services due to my mum whk is suffering with Dementia and they Believed he was to much for my mum, however mum was fighting this via the courtes as she Believed otherwise. To cut a long story short im still trying to sort out a bill from the council regarding his stay.
Now i dont have POA over my mum,social services are trying to organise me having Deputyship of her finances as she spends money left right and centre. She is under mental health due to her threats of taking her own life. I Honestly dont think she will be around this time next year. She has a house that is worth approx. £350k but wuth a life time mortgage of £90k. My thinking is should anything happen to my mum i dont want the house although it is left to me,can i sell it to my 2 children for the £90k. If anyone who also read this could help out with some advise thanks.


I know a solicitor would be needed but has anyone else been in this situation. Oh by the way im an only child. Thanks in advance.

 

[dazzer6666]

Sorry about your loss. Did you find it easy dealing with it all?
Reason for asking my dad passed away in a nursing home back in March, he was put into care by social services due to my mum whk is suffering with Dementia and they Believed he was to much for my mum, however mum was fighting this via the courtes as she Believed otherwise. To cut a long story short im still trying to sort out a bill from the council regarding his stay.
Now i dont have POA over my mum,social services are trying to organise me having Deputyship of her finances as she spends money left right and centre. She is under mental health due to her threats of taking her own life. I Honestly dont think she will be around this time next year. She has a house that is worth approx. £350k but wuth a life time mortgage of £90k. My thinking is should anything happen to my mum i dont want the house although it is left to me,can i sell it to my 2 children for the £90k. If anyone who also read this could help out with some advise thanks.


I know a solicitor would be needed but has anyone else been in this situation. Oh by the way im an only child. Thanks in advance.

I feel for you - sounds a difficult situation.

Re your mum’s finances, I would see a solicitor - the MH issues potentially make it more complicated in terms of her altering her will (one way to have the property go straight to your children ?) and getting POA (we’ve already done this in the event one or both of us become incapable at some point - the earlier the better). The mortgage will need to be paid off or renegotiated from the estate before any distributions (including the property) can be made

 

[loz]

Sorry about your loss. Did you find it easy dealing with it all?
Reason for asking my dad passed away in a nursing home back in March, he was put into care by social services due to my mum whk is suffering with Dementia and they Believed he was to much for my mum, however mum was fighting this via the courtes as she Believed otherwise. To cut a long story short im still trying to sort out a bill from the council regarding his stay.
Now i dont have POA over my mum,social services are trying to organise me having Deputyship of her finances as she spends money left right and centre. She is under mental health due to her threats of taking her own life. I Honestly dont think she will be around this time next year. She has a house that is worth approx. £350k but wuth a life time mortgage of £90k. My thinking is should anything happen to my mum i dont want the house although it is left to me,can i sell it to my 2 children for the £90k. If anyone who also read this could help out with some advise thanks.


I know a solicitor would be needed but has anyone else been in this situation. Oh by the way im an only child. Thanks in advance.

Luckily, mum had written her will very comprehensively ( she even had written hymns, prays and poems that she wanted read) so it all went well with little trouble from the solicitor. This was made even easier by a cash buyer for the house.

 

[The Antikythera Mechanism]

I'm no expert, but I believe your mother-in-laws's allowance passed to your father-in-law permanently. It isn't time dated.

This is correct. My Dad died 22 years before my Mum and the allowance still passed on.

 

[Bodian]

I'm no expert, but I believe your mother-in-laws's allowance passed to your father-in-law permanently. It isn't time dated.

There’s no time limit as far as I’m aware - there are some conditions (for example if he’s changed properties since) but if it’s the same house then you’ll benefit from the transferred RNRB.

This is correct. My Dad died 22 years before my Mum and the allowance still passed on.

Thanks all

 

[Baldseagull]

I don’t think that’s the main reason why 'older folk' don’t all downsize. Sometimes it’s just far more trouble than it’s worth. There are two of us in a large-ish house and we’ve no plan to downsize. It’s taken a very long time to get here but we’ve finally got enough room to do what we want to do, and to store decades' worth of crap. It would be a nightmare to move into a much smaller place again. Maybe when one of us dies the other will decide it’s all too much hassle to maintain. But certainly nothing to do with IHT. And I don’t see how older people downsizing has any impact on the housing crisis. Unless so many older people moved at once that there was a massive oversupply and a house price drop. And where do all the oldies move to? Wouldn’t we put a massive strain on the supply of small houses and apartments, pushing up the price for younger, lower income families? Too simplistic an argument IMO.

Single people living alone in 3 and 4 bed houses is not a good use of the existing housing stock, I grant you that inertia and accumulated possessions is a major reason for people not downsizing, but the ability to pass on more of your wealth to your kids is another, freeing up family homes for families should be encouraged, rather than discouraged.
I am certainly not claiming that this would fix the housing crisis, there are bigger factors, but this adds to it.

 

[dazzer6666]

Single people living alone in 3 and 4 bed houses is not a good use of the existing housing stock, I grant you that inertia and accumulated possessions is a major reason for people not downsizing, but the ability to pass on more of your wealth to your kids is another, freeing up family homes for families should be encouraged, rather than discouraged.
I am certainly not claiming that this would fix the housing crisis, there are bigger factors, but this adds to it.

The major reason is people simply don’t want to move after being in a house for (probably) many, many years where they know their neighbours, the immediate area and have strong emotional ties to their home.

 

[Baldseagull]

The major reason is people simply don’t want to move after being in a house for (probably) many, many years where they know their neighbours, the immediate area and have strong emotional ties to their home.

Yes, but if there was an incentive through IHT rules or other scheme to downsize, more would do it. At the moment there is a further disincentive through IHT rules.

 

[dazzer6666]

Yes, but if there was an incentive through IHT rules or other scheme to downsize, more would do it. At the moment there is a further disincentive through IHT rules.

Not convinced personally. Would have to be an enormous incentive to get people to give up their long-term family home. None of the elderly people I know in houses bigger than they need want to leave, and saving their kids a bit of tax wouldn’t change their minds (including my mum).

 

[The Clamp]

Another tax break for the wealthy.

Despicable.

 

[dazzer6666]

Another tax break for the wealthy.

Despicable.

The really wealth avoid it anyway to a large extent……it’s a (crap) attempt at trying to secure a few votes.

 

[Baldseagull]

Not convinced personally. Would have to be an enormous incentive to get people to give up their long-term family home. None of the elderly people I know in houses bigger than they need want to leave, and saving their kids a bit of tax wouldn’t change their minds (including my mum).

I guess my argument has been beaten then, with Your Mum.